TOKYO—The Bank of Japan is set to maintain ultra-low interest rates and its dovish policy guidance on Thursday, a decision that comes hours after its U.S. counterpart’s expected big rate hike and could trigger a fresh bout of yen selling.
The policy gap between the Bank of Japan (BOJ) and the U.S. Federal Reserve has pushed the yen to 24-year lows, driving up import costs and helping inflation stay above the BOJ’s 2 percent target for five straight months in August.
